The G-7 is in full panic mode. The organization for the prevention of harm to the Status Quo was expected to release a communique possibly over the weekend, but the speed with which one was dropped for mass circulation is stunning and confirms that its members are in full meltdown as the weekend comes. It is now certain that the G-7 will attempt some major intervention over the next 48 hours to inject a last dose of hope into capital markets, or else the Monday open will be an epic collapse.

G-7 Statement on Tackling Slowdown, Supporting Banks

“We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances.

This is reflected in heightened tensions in financial markets.

There are now clear signs of a slowdown in global growth. We are committed to a strong and coordinated international response to these challenges.

“We are taking strong actions to maintain financial stability, restore confidence and support growth. In the U.S., President Obama has put forward a significant package to strengthen growth and employment through public investments, tax incentives and targeted job measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term. Euro area countries are implementing the decisions taken on July 21 to address financial tensions, notably through the flexibilization of the EFSF, reaffirming their inflexible determination to honor fully their own individual sovereign signatures and their commitments to sustainable fiscal conditions and structure reforms. Japan is implementing substantial fiscal measures for reconstruction from the earthquake while ensuring the commitment to medium-term fiscal consolidation.

“Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth. We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible fiscal frameworks.

Fiscal policy faces a delicate balancing act. Given the still fragile nature of the recovery, we must tread the difficult path of achieving fiscal adjustment plans while supporting economic activity, taking into account different national circumstances.

“Monetary policies will maintain price stability and continue to support economic recovery. Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets. In this context we reaffirm our commitment to implement fully Basel III.

“We reaffirmed our shared interest in a strong and stable international financial system, and our support for market- determined exchange rates. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will consult closely in regard to actions in exchange markets and will cooperate as appropriate.

“We look forward to working with our colleagues in the G20 and the IMF in the coming weeks to rebalance demand and strengthen global growth. As previously agreed, structural reforms will make an important contribution in this regard.”

"The G7 reaffirmed its comittment to safeguarding the solidity of sovereign ratings."

"We have to get away from the idea there is only one solution for all... It's not rigour versus growth."

"It was a G7 where everything was raised. There was no dead time."

BANK OF FRANCE GOVERNOR CHRISTIAN NOYER

"There is an extreme tension on the markets, what's important is that very strong measures are taken by governments concerned."

"It was really a meeting of great cohesion and force. There was a determination by everyone to meet challenges."

G7 OFFICIAL

"The G7 sees a need for a concerted effort at global level in support of strong, sustainable and balanced growth.

"We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible frameworks.

"The G7 affirmed its interest in a strong, stable international financial system."

EARLIER COMMENTS

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

"It is completely within the capacity of the stronger members of the euro area to absorb those costs. Those costs would be much, much greater for them and their economies if they sit here and do nothing and they recognize that."

CANADIAN FINANCE MINISTER JIM FLAHERTY

"I hope we would all agree we have to stay the course, that we have to go through the pain of fiscal consolidation. It's not easy, it creates stresses in some countries, but it's necessary, we have to get through this rough patch.

"There's no point kicking the can down the road. If we don't deal with it now we'll have to deal with it later and we know that these problems do not get better with the passage of time."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

"We support the United States in its work so that the U.S. recovery can continue, while in Europe we have our own challenges related to fiscal consolidation and restoring confidence in the European economy."

On bank funding:

"Solutions should be found from private markets, from private investors and if that is not is possible there should be national backstops in place to ensure recapitalisations or restructuring for these banks."

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"The G7 sees a need for a concerted effort at global level in support of strong, sustainable and balanced growth." = Inflation for the masses, tea and cakes for the elite. Key misleading word, "growth".

"We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible frameworks." = Bank buy-outs so we can hide the sausage. Key clue, "consolidation".

"It is completely within the capacity of the stronger members of the euro area to absorb those costs. Those costs would be much, much greater for them and their economies if they sit here and do nothing and they recognize that."

Geithner you commie!! From each according to his printing ability, to each according to his credit worthiness.

Twisted prick!

OT: Loaded up on silver again today. Phyzz... not the smoke and mirrors type. You can feel something big coming, yet it's all being downplayed like some additional "liquidity needs to be injected and the patient lives". Except, patient passed away 3 years ago, gov't morons.

It's going to cost them a lot more if they do "fix it" too; that's what all the cognitive dissonance is about. Does anyone remember what the famous "handwriting on the wall" actually said? I'll leave it to someone else to post it. It's classic; because it's exactly what the "leaders" will not see until it falls on their heads.

No it wont. When people dig up the ZH hard drives 200 years from now. They will say "this is a good one" Not because it has trace ammounts of silver or gold in the back plane. They will dig it up because the head of the IRS is a tax cheat and he does not really give a shit.

Then they will raster out the boot sector to find the letters k e y n e s. There are two rules of keynseanism

Global Elites have seen these sovereign debt issues coming for a minimum of 15 years now.Do you really think a collapse is going to come when everyone MOST expects it?I’m assuming gold will be revalued and brought to its true value as a global sovereign asset and will instantly recapitalize all governments.

Global Elites have seen these sovereign debt issues coming for a minimum of 15 years now.Do you really think a collapse is going to come when everyone MOST expects it?I’m assuming gold will be revalued and brought to its true value as a global sovereign asset and will instantly recapitalize all governments.

EDIT: When I said Timmy=Tyler I meant the Tyler in the movie, giving the "two rules" speach. not our Tyler(s).

my post is still junk worthy, but hopefully not for that lack of original context/sarcasm. Look up what keynes really thought about money printing and taxation, and then you will understand what this administration and its seers (krugman) have made zero progress in the last 3 years. That, and it being Bush's fault.

Sorry for late reply and apologize in advance in I tread on someone else's response, just getting through the comments...

Dan 5:25-28

MENE MENE TEKEL UPHARSIN

Essentially...

Numbered, numbered, weighed, divided

God numbered Belshazzar's days, weighed him and found him wanting, divided the kingdom and gave it to the Medes and Persians.

Danial stated the reason for the message was that Belshazzar did not give credit where credit was due, the King came to collect and he could not pay, therefore his kingdom and life were taken the night of the interpretation.

Interesting they had to bring in a foreigner before the king to interpret what all the in-house experts could not. That foreigner was a Jew in forced exile ordained by God to be in place for such a time at this.

Zadok - good timing for this teaching. Others will mock and perhaps babble on about ancient wisdom being mythos but the day is coming, and could be sooner than we imagine, when they will give an answer for their mocking disbelief.

The grandeur of God cannot be measured. We have somewhere near an estimated seven billion (give or take a billion) stars in our own Milky Way Galaxy with an unknown number of planets orbiting them. The Hubble did a deep space "stare" about seven years ago where they blew up one degree of space and then they counted the galaxies. They presented the findings that based on extrapolation, that there were estimated to be 250 BILLION GALAXIES. Jewels each and every one, set in the splendor of black space to be admired and marveled as they blaze from the fire of their individual suns. That alone is staggering; but then there are black holes, dark matter, expanding space, et. al. that keeps things interesting. Nemesis might be bringing the "shock and awe" later this year that our planet would prefer to avoid.

I seriously doubt tax cheat Timmy even ran any numbers before he made that stupid statement. Just like his statement the US would never be downgraded.

These guys are playing a paper game that is completely divorced from economic reality. Goods and services are not increasing...the mark of true economic health and growth. They are all just moving debts around the European game board. Whoever holds them last gets burned.

Germanyl may be the economic battleship but it will sink too if all the little sinking ships tether to it. It cannot hold up all the PIIGS and I really don't know why it wants to. The losses will be even larger and transferred to their country with these stupid interventions. Let the morons fail and fall.

Of course, I agree with you; oh Oracular One. But if one believes in the science of Von Mises; there is another force which cannot be stopped. "The Crack-up Bust after the Boom, cannot be avoided"; or to that effect. My photographic memory is a little foggy these days.

Yep, manipulating the theater of the absurd is their entire raison d'être. It's ironic, but the ultimate game is nothing more than recognizing fear & greed - writ large - and playing the results accordingly.

For greed (read:hyper-inflation) to ascend primacy, it's takes energy, action & determination: printing, speeches, rallying the troops, etc. For fear (read:deflationary collapse) to win, all it takes is resignation; a final recognition that all things must pass.

So, sit back and place yourself in position of one of the Chosen: for thousands of years, they have watched the ebb & flow of human emotion drive regional & global markets. No need to invest in knowledge, technology, morality or any other activity that takes a modicum of effort.

Nope, simply sell the drug(s) that satisfy the ancient sins and watch the emotional state of the marks as they experience each degree of successive denouement. Will there be yet another (weak) rally geared towards marshalling the last stores of energy, or is capitulation near?

That's what the masters have studied, with their knowledge passed down throughout the ages. Wait & watch, but only stike when the death throes begin. Ever see a zebra's eyes glaze over as they realize the game is up? They too are ready to accept their fate as the lions' jaws snap shut.

But the Canadiean dude may be a closet ZHer from the last sentebce of this quip:

CANADIAN FINANCE MINISTER JIM FLAHERTY

"I hope we would all agree we have to stay the course, that we have to go through the pain of fiscal consolidation. It's not easy, it creates stresses in some countries, but it's necessary, we have to get through this rough patch.

"There's no point kicking the can down the road. If we don't deal with it now we'll have to deal with it later and we know that these problems do not get better with the passage of time."

'----no point in kicking the can down the road.'

these guys will co-opt anything to make themselves feel good. They are in complete denial, so--------where's cog dis when we need him to deal with an acute psycho-crisis such as the one these dudes are in????????/

True enough but its the manipulation that kills traders. These asshats use our future to vainly attempt securing their own failed asses today. The EUR has been artificially propped up long enough to cause real pain for so many fundamental traders. They do the same with EVERYTHING. The same brain dead useful idiots who love to ramble on against the 'evils' of free markets and capitalism are doing far more damage than either supposed beast ever could. It is the artificial that is killing us. It is the lie that is killing us. In trying to make life 'fair' they are destroying it.